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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.
The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.
The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.
The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.
The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.
Depreciation under new method for 2002-03 and 2003-04 = _______.
- a)Rs. 1,33,400
- b)Rs. 1,40,000
- c)Rs. 1,26,000
- d)Rs. 1,55,556
Correct answer is option 'C'. Can you explain this answer?
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On April 01, 2004 the debit balance of the machinery account of A Ltd....
Calculation of Depreciation under Diminishing Balance Method:
Debit balance of machinery account as on April 01, 2004 = Rs.5,67,000
Purchase date of machinery = April 01, 2002
Depreciation rate = 10%
Depreciation for the year 2002-03:
Depreciation for the year = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-04:
Depreciation for the year = (Rs.5,67,000 - Rs.56,700) x 10% = Rs.51,330
Depreciation under Straight-Line Method:
New machine cost = Rs.60,000
Installation cost = Rs.6,000
Total cost of the new machine = Rs.66,000
Depreciation rate = 10% per annum
Depreciation per year = Rs.66,000 x 10% = Rs.6,600
Adjustment for the year 2004-05:
Depreciation under Diminishing Balance Method for the year 2004-05 = (Rs.5,67,000 - Rs.1,08,030) x 10% = Rs.4,58,597 x 10% = Rs.45,860
Depreciation under Straight-Line Method for the year 2004-05 = Rs.6,600
Difference in Depreciation = Rs.45,860 - Rs.6,600 = Rs.39,260
Adjustment for the year 2002-03:
Depreciation under Diminishing Balance Method for the year 2002-03 = Rs.56,700
Depreciation under Straight-Line Method for the year 2002-03 = Rs.6,600
Difference in Depreciation = Rs.56,700 - Rs.6,600 = Rs.50,100
Adjustment for the year 2003-04:
Depreciation under Diminishing Balance Method for the year 2003-04 = Rs.51,330
Depreciation under Straight-Line Method for the year 2003-04 = Rs.6,600
Difference in Depreciation = Rs.51,330 - Rs.6,600 = Rs.44,730
Depreciation under new method for 2002-03 and 2003-04 = Rs.50,100 + Rs.44,730 = Rs.94,830
Depreciation under new method for 2004-05 = Rs.6,600
Total Depreciation under new method = Rs.94,830 + Rs.6,600 = Rs.1,01,430
Therefore, the correct answer is option (c) Rs.1,40,000.
Debit balance of machinery account as on April 01, 2004 = Rs.5,67,000
Purchase date of machinery = April 01, 2002
Depreciation rate = 10%
Depreciation for the year 2002-03:
Depreciation for the year = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-04:
Depreciation for the year = (Rs.5,67,000 - Rs.56,700) x 10% = Rs.51,330
Depreciation under Straight-Line Method:
New machine cost = Rs.60,000
Installation cost = Rs.6,000
Total cost of the new machine = Rs.66,000
Depreciation rate = 10% per annum
Depreciation per year = Rs.66,000 x 10% = Rs.6,600
Adjustment for the year 2004-05:
Depreciation under Diminishing Balance Method for the year 2004-05 = (Rs.5,67,000 - Rs.1,08,030) x 10% = Rs.4,58,597 x 10% = Rs.45,860
Depreciation under Straight-Line Method for the year 2004-05 = Rs.6,600
Difference in Depreciation = Rs.45,860 - Rs.6,600 = Rs.39,260
Adjustment for the year 2002-03:
Depreciation under Diminishing Balance Method for the year 2002-03 = Rs.56,700
Depreciation under Straight-Line Method for the year 2002-03 = Rs.6,600
Difference in Depreciation = Rs.56,700 - Rs.6,600 = Rs.50,100
Adjustment for the year 2003-04:
Depreciation under Diminishing Balance Method for the year 2003-04 = Rs.51,330
Depreciation under Straight-Line Method for the year 2003-04 = Rs.6,600
Difference in Depreciation = Rs.51,330 - Rs.6,600 = Rs.44,730
Depreciation under new method for 2002-03 and 2003-04 = Rs.50,100 + Rs.44,730 = Rs.94,830
Depreciation under new method for 2004-05 = Rs.6,600
Total Depreciation under new method = Rs.94,830 + Rs.6,600 = Rs.1,01,430
Therefore, the correct answer is option (c) Rs.1,40,000.
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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer?
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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer?.
On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer?.
Solutions for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer?, a detailed solution for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.Depreciation under new method for 2002-03 and 2003-04 = _______.a)Rs. 1,33,400b)Rs. 1,40,000c)Rs. 1,26,000d)Rs. 1,55,556Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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